AT&T and Discovery are preparing to compete with Netflix by creating an on-demand video service with a new merger.
US-based telecommunications company AT&T It is stated that it has merged its content producer WarnerMedia with its rival media and entertainment company Discovery, and is approaching an agreement to create a video on demand service worth 150 billion dollars.
According to the news in The Guardian, AT&T separates the media business from the company. Discovery plans to merge with. AT&T board of directors examined and approved the merger agreement at the meeting held on Sunday. The agreement envisaging a tax-free merger is expected to be announced in the coming days.
Under the deal, Warner Bros’ film and television studios, cable channels such as HBO and CNN, and Discovery will join together to form a new video-on-demand initiative.
AT&T entered the media and content production industries by purchasing Time Warner for $ 85.4 billion in 2018.